The official announcement came at a Wednesday news conference at the Nike Store on Woodward in downtown Detroit.

Palace Sports & Entertainment vice chairman and Pistons minority owner Arn Tellem, Pistons team president and coach Stan Van Gundy and Flagstar Bank president and CEO Alessandro DiNello were on hand to tout the benefits of the deal, which is also a multiyear deal to become the team's first jersey sponsor and official banking and mortgage sponsor. Terms were not disclosed.

The Detroit Pistons' new Nike uniform, complete with the new Flagstar Bank jersey patch.(Photo: Detroit Pistons)

“We went through a detailed process,” Tellem said. “Talked to a lot of companies. I think it was pretty clear along the way that Flagstar just emerged as the right choice for us. It took a long time to get to the finish line, but we’re really happy that we did.”

Flagstar was the front-runner for naming rights at the Palace of Auburn Hills, but it's a natural adjustment with the Pistons moving downtown to Little Caesars Arena this coming season. The first preseason game is Oct. 4.

PS&E, owned by Platinum Equity founder and CEO Tom Gores, is the umbrella organization over the Pistons.

The NBA announced in 2016 a three-year pilot program that allows teams to sell ad space on uniforms beginning in the 2017-18 season. The NBA is the first of the major U.S. pro sports leagues to allow ads on jerseys, bringing criticism from traditionalists.

The money breakdown:

• The Pistons receive 25% of the revenue.

• Another 25% goes to the NBA's basketball related income pool.

• NBA players receive the other 50%.

To offset concerns of NBA players turning into walking billboards, the league only allows a small patch on the left shoulder of the jersey.

“This issue was debated at length among the teams," Tellem said. "I think everyone really decided at the end that it was worth trying. It's been very successful in Europe, and around the world in soccer. I know other sports leagues here are now looking at it, and I think it was the right decision by the NBA.”

The event also served as the unveiling of Pistons’ new Nike designed jerseys, with the familiar swoosh on the right side of the uniform.